Morning Mint Newsletter
Thursday, January 23, 2025
Market Overview
- After a sharp decline to a seven-month low due to tariff concerns, India’s benchmark indices experienced a modest recovery on Wednesday.
The Nifty 50 rose by 0.57% to 23,155, and the Sensex increased by 0.75% to 76,405 This uptick was supported by gains in HDFC Bank due to expected result, climbing about 1.4%.
Corporate Earnings
- HDFC Bank: India’s largest private lender reported a standalone net profit of ₹16736 crore for the third quarter ending December 31, aligning closely with analyst expectations.
However, the bank’s asset quality declined, with gross non-performing assets (GNPA) rising to 1.42% from 1.36% in the previous quarter, primarily due to an increase in bad agricultural loans. Provisions for bad loans and contingencies also grew by 17%, reaching ₹3154 crores
Technical Insights
- The Nifty 50 formed a hammer candlestick pattern on the daily chart, indicating a potential reversal if the index sustains above 23,300/350 levels.
Immediate resistance is at 23,265, with potential targets between 23,600 and 23,800 upon a breakout. Conversely, a close below 23,000 could signal a bearish trend, possibly dragging the index down to 22,800 and eventually 22500.
Investor Activity
- Foreign Portfolio Investors (FPIs) continued their selling streak for the 14th consecutive session on Wednesday, offloading Indian equities worth ₹4,026.25 crore.
In contrast, Domestic Institutional Investors (DIIs) were net buyers for the 25th straight session, purchasing equities amounting to ₹3,640.22 crore.
Upcoming Events
- Investors are keenly awaiting third-quarter earnings reports from major companies, including UltraTech Cement, ICICI Bank, Adani Green, Adani Energy, Mphasis, and Tejas Network, to gauge market direction.
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